The ABC Incorporated paid a dividend of Php142.60 per share last year. Yesterday's last price is Php2,300 with the current yield of 6.2%. This problem is an example of _____.
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- 1.Unikai company LLC have some surplus funds for a short period of time which they want to invest in some short-term securities. Which of the following is not an appropriate source for the company? a.All of these b.Commercial paper c.Equity shares d.Treasury bills 2.In Muscat SAOG company, there are 400000 shares and the management declared OMR 800000 as net profit. What would be the earning per share? a. OMR 5 b. None of the options c. OMR 4 d. OMR 2Consider this example: Shares of Ex Why Zee, Inc. (ticker symbol: XYZ) are currently trading at $6 per share. XYZ plans to issue $6M in short term debt and use the money they borrow to repurchase $6M worth of their own stock. What effect will the debt issuance and share repurchase have on the balance sheet? There isn't enough information to answer this question Assets will increase by $6M Liabilities will decrease by $6M Number of Shares Outstanding will increase by 1 million Equity will decrease by $6MThe Sweet Melon Corp. has total 100 shares trading on the market at $20 each.The book value of the total equity is $3500.The total market value of debt issurance is $4000.The expected return on total assets is 15% and the expected return on debt is 10%.What is the estimated return on equity? A.17.5% B.25% C.None of the choices D.18.3
- b. A certain company gave out P25 dividend per share for its common stock. Themarket value of the stock is P92. Determine the stock yield ratio.c. A property holdings declared a dividend of P9 per share for the common stock. Ifthe common stock closes at P76, how large is the stock yield ratio on thisinvestment?d. Find the amount of the semi-annual coupon for a P250,000 bond which pays 7%convertible semi-annually for its coupons.The problems below illustrate stocks or bonds. Using the important terms related to stocks and bonds, answer the following problems completely. a. A land developer declared a dividend of P5,000,000 for its common stock. Suppose there are 100,000 shares, how much is the dividend per share? b. Find the amount of semi-annual coupon for a P300,000 bonds which pays 6.5% convertible semi-annually for its coupons. c. A certain company gave out P50 dividend per share for its common stock. The market value of the stock is P125. Determine the stock yield ratio. d. What is the current yield of a bond whose face value is P15,000 and pays an annual interest of 6.5% if purchased at face value at P13,500?The problems below illustrate stocks or bonds. Using the important terms related to stocks and bonds, answer the following problems completely. a. A land developer declared a dividend of P5,000,000 for its common stock. Suppose there are 100,000 shares, how much is the dividend per share? b. Find the amount of semi-annual coupon for a P300,000 bonds which pays 6.5% convertible semi-annually for its coupons. c. A certain company gave out P50 dividend per share for its common stock. The market value of the stock is Pi25. Determine the stock yield ratio. d. What is the current yield of a bond whose face value is P15,000 and pays an annual interest of 6.5% if purchased at face value at P13,500? 1. How can we determine if the problem or scenario involves or illustrates stocks or bonds? 2. What possible problems or questions may we encounter when we are dealing with stocks? How about when we are dealing with bonds? 3. What factors have a great effect on the return of your investments both on…
- If iOS Corp. issues an additional $8 million of debt and uses this money to retire common stock, what will be the expected return on the stock? Assume that the change in capital structure does not affect the risk of the debt, and recall that the WACC under the initial capital structure is 13.85%. Enter your answer as a percentage. Do not include the percentage sign in your answer. Enter your answer rounded to 2 DECIMAL PLACES. TE= Number Click "Verify" to proceed to the next part of the question.The following table presents information for Golden Fleece Financial. Long-term debt outstanding Current yield to maturity on debt Number of shares of common stock Price per share Book value per share Expected rate of return on stock $ 340,000 8.50% 12,000 $54 $ 29 16.00% Calculate the company cost of capital. Note: Ignore taxes. Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. X Answer is complete but not entirely correct. Cost of capital 988,000.00 %9. The stockholders’ equity section of Kay Corporation at the end of 2015 showed: (see attached images for the given, please answer it. thank you so much) a.What is the peso amount to be reported for preference shares? b. What is the average price for which ordinary shares were issued? c. If preference shares were issued at an average price of P53 per share, what amount should appear in its paid-in capital in excess of par? d. What is the average cost per share of treasury stock? (Round to the nearest cent.) e. What is the revised retained earnings if the net income for the year is P167,000 and total dividends declared is P50,000? f. Present the shareholders’ equity.
- 3. (a): The stock price for Bank Muscat was OMR 100 per share one year ago. The stock is currently trading at OMR 92 per share. Shareholders just received OMR 20 as dividend. Calculate the "Return" was earned over the past year? (b): First find W, and then calculate the "Weighted average" cost of capital of a Company from the following table details: Capital Component Amount WCost Debt Preferred Stock Common Stock 40,000 5% 30,000 6% 50,000 4%Solve the word problem on Stocks and bonds. (Round amount to the nearest centavo) • RFÓ Distributor bought 18,800 shares of stocks at P1.43 par value with a preferred quarterly dividend rate of 8.5%. How much is the amount of quarterly dividend?The following financial data on the Bond Axiata Berhad are available:Earnings available for common stockholders RM1,600,000 Number of shares of common stock outstanding 800,000 Market Price per share RM40.00 The firm is currently considering whether it should use RM800,000 of its earnings to pay cash dividends of RM1 per share or to repurchase stock at RM42 per share.(a) Estimate the Earnings per share before repurchase (EPS)(b) Find the Price/earnings (P/E) ratio(c) Determine how many shares of stock can the firm repurchase at the RM42-per share price, using the funds that would have gone to pay the cash dividend. (d) Calculate the EPS after the repurchase. Explain your calculations.(e) If the stock still sells at 10 times earnings, what will the market price be after the Repurchase. (f) Examine the pre and post-repurchase earnings per share for the Bond Axiata Berhad(g) Compare and contrast the stockholders’ positions under the dividend and repurchase alternatives. Discuss the tax…